RLH Corporation Closes Sale of Red Lion Hotel Templin's on the River for $9.25 Million
RLH Corporation (NYSE:RLH)
announced the sale of Red Lion Hotel Templin's on the River in
Post Falls, Idaho for $9.25 million. The hotel marks the seventh of 11
hotels being marketed for sale previously disclosed in October 2017. Red
Lion Hotel Templin's on the River, along with all other sold hotels,
has signed a franchise license agreement to retain their Red Lion
brand.
RLH Corporation's total loss on the sale is expected to be
approximately $0.3 million, and $6.7 million of the proceeds of the sale
was used for debt repayment at the closing. Together with the other six
previously announced sales, RLH Corporation's gain on sales is
approximately $16.2 million.
“We have made great strides in becoming an asset light company,” said
RLH Corporation President and Chief Executive Officer Greg Mount. “With
seven hotels sold so far in 2018, we have been able to repay the
long-term debt relating to those assets and increase cash reserves and
debt capacity to fund growth of our franchise business.”
Red Lion Hotel Templin's on the River accounted for $4.3 million in
revenue on an annual basis in 2017. The hotel's adjusted EBITDA on
consolidated reporting was $1.0 million and RLH Corporation's share of
the adjusted EBITDA was approximately $0.5 million for 2017. This impact
does not take into account the previously announced corporate overhead
adjustments to reduce operating costs.
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